Belgian Government Proposes VAT Regime for Real Estate Rentals
Belgium is one of the last EU member states to use its right to exempt the leasing or letting of immovable property from VAT (article 137 (1) (d) of Directive 2006/112/EC).
That makes Belgium less competitive than other EU member states. If the leasing or letting is not subject to VAT, the landlord does not charge VAT on the rent but, most importantly, he cannot recover the VAT he paid to build or renovate the property. That VAT is then an additional cost that is charged back to the tenant, resulting in higher rent, and the tenant cannot recover the VAT.
Belgian Government Proposes VAT Regime for Real Estate Rentals, Worldwide Tax Daily, 11 April 2018, DOC 2018-15665